NOVATEK closes sale of 20% interest in Yamal LNG to CNPC
OAO NOVATEK announced today the closing of the sale of a 20% participation interest in Yamal LNG Project (“Project”) to CNODC, a subsidiary of China National Petroleum Corporation (“CNPC”), upon the receipt of all necessary regulatory approvals from Russian, European and Chinese authorities. Following the completion of the deal, the shareholder structure of Yamal LNG is as follows: OAO NOVATEK - 60%, Total S.A. - 20%, CNPC - 20%.
The entrance of CNPC into the Project envisages a payment for the participation interest, proportional reimbursement of past costs of NOVATEK as well as disproportional financing for the Project through contributions to the charter capital of Yamal LNG and shareholder loans.
Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson stated “The closing of the deal with CNPC is the culmination of our hard work and collective efforts. Our partners in Yamal LNG are now two well-established international companies with extensive expertise in the execution of large-scale oil and gas projects. We believe that the current shareholder structure of Yamal LNG allows us to successfully and timely complete the Project which has already entered into the active construction stage”.
The Yamal LNG project will construct an LNG plant with annual capacity of 16.5 million tons per annum based on the feedstock resources of the South-Tambeyskoye field. According to the PRMS reserve standards, the proven and probable reserves of the South-Tambeyskoye field as of 31 December 2012 were appraised at 907 billion cubic meters of natural gas. The Project also requires the construction of transport infrastructure including a sea-port and an airport located at Sabetta (north-east of the Yamal Peninsula). The final investment decision for the Project was approved on 18 December 2013.
OAO NOVATEK is Russia’s largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 90% of Russia’s natural gas production and approximately 17% of the world’s gas production. NOVATEK is an open joint stock company established under the laws of the Russian Federation. The Company’s shares are listed in Russia on MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker symbol «NVTK».
CNPC is China's largest oil and gas producer and supplier, and respected contractor in engineering services and construction.
